Is your fee schedule graduated or cascading (i.e. if I have $485,000, do I pay .70% on the first $249,999 and then 0.60% on the balance, or just 0.60% on everything?)
We charge a flat fee at predetermined asset levels. If you have $485,000 in assets invested with Innovisor, you will pay 0.60% on the entire $485,000. When your assets reach $500,000 this fee drops to 0.50% on the entire amount.
Does my fee threshold change as my portfolio value increases or decreases?
Changes in market value will only lower your fees as you cross a threshold (i.e., portfolio value increasing). Initially, the fee level will be determined by deposit value. Any subsequent decreases in portfolio value (caused by markets declining) will NOT result in higher fees. However, if portfolio value decreases due to withdrawals, you may have to pay higher fees based on the schedule.
How do Polaris Wealth Direct fees compare to traditional wealth management firms?
Traditional wealth management fees are likely to be significantly higher. Traditional advisors often engage in stock picking, market timing and similar strategies that increase fees and decrease expected returns over time.
Some advisors also have conflicts of interest. For example, at some large banks, advisors are incentivized to recommend in-house bank products and other bank services. Generally, these in-house products carry higher fees than third-party alternatives.
At Polaris, we keep portfolio management fees low by employing a simple and academically proven investment approach. It eliminates many of the inefficiencies that exist in the traditional wealth management model.
How do Polaris Wealth Direct fees compare to a robo-advisor?
Management fees for a pure robo-advisor may be higher or lower depending on a firm’s fee schedule. But you will find that Polaris Wealth Direct fees are competitive with robo-advisor firms.
When you work with a robo-advisor, you may not get the benefit of a human advisor or access to additional services like:
- financial planning
- estate planning
- tax preparation
- tax planning